Category: micro cap stocks

Are you dynamic? Or are you safe? Are you one of those aggressive investors who like to try out the fast moving stocks even if it means taking a lot of risk? Or would you rather be the conventional investor picking only select stocks that display a predictable behavior? Or maybe a bit of both – playing by the ear – one who takes measured, calculated risks? If so, then the Small-and-Medium-Indian-Leading-Equities (SMILE) that was launched in February 2005 by Sundaram BNP Paribas Mutual Fund could be tailor-made just for you.

Sadly at that point of time, stock prices as well the Sensex & Nifty were high and there was plenty of scepticism in the markets about the impending bear phase. This is October 2009 and now that we have left the bears behind us, (as we can safely say) and with the Sensex crossing the 17,000 Level and also from the macro economic point of view, the general faith in the economy and the markets has been substantially restored. The pumping in of funds by the FIIs and a good & stable functional government have worked towards bringing in adequate liquidity in the financial system which in turn has enhanced the level of optimism in the Indian market as also in all the Global markets which bottomed out together around February-March, this year.

It has been a noticeable trend in the recent past that Mid Cap and Small Cap stocks tend to outperform the Large Caps in the longer term. It is because of this reason that SMILE intends to have Mid and Small Caps as its strategic focus with a cushion of 35% on Large Cap stocks.

Key Features of the Scheme

Aggressively managed multipurpose fund

Capital appreciation by active, sector, trading & cash calls

Focus on Mid Cap & Small Cap with a cushion of 35% in large cap stocks